Mortgage After Bankruptcy

Mortgage After Bankruptcy

Mortgage after bankruptcy can be a frustrating process, especially when you are told that you have not met the waiting period required before applying for a loan.

Fannie Mae and FHA require at least a two year waiting period for a mortgage after bankruptcy, short-sale or pre-foreclosure. This waiting period has been reduced from the four year waiting period.

mortgage after bankruptcy

Hard Money Loans After Bankruptcy

Hard money lenders require just one day waiting period after bankruptcy discharge. So there are financing options available that require virtually no waiting period. Filing bankruptcy is stressful and is usually a result of an adverse event such as a job loss.

Fortunately, in 2016 Lenders have realized that most borrowers do not have perfect credit and thus there are now loan products available that make it easier for borrowers to qualify for a real estate mortgage after bankruptcy.

There are loans available to people with credit scores as low as 500.

Buying A Home After Bankruptcy In California

It is important that you get your documents in order before applying for a mortgage. Tips include:

  • check your credit report after bankruptcy discharge to make sure that all information reported is correct. If there are any errors fix them before applying for a home loan.
  • gather copies of all official documentation including foreclosure actions, property tax records, bankruptcy discharge etc.
  • keep any installment loans not discharged in bankruptcy current and paid on time – this shows that good payment history after bankruptcy.
  • Apply for a secured credit card and make sure payments are made on time for at least the minimum amount due. Paying a little more than the minimum payment due is a good idea.
  • lenders will also want to see a good payment history for housing, so make sure current rent payment or mortgage payments are made on time for the amount due.

For more information on applying for a mortgage after bankruptcy or other hard money loans such as self employed mortgage or subprime loans please contact us.

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